Offshoring of very-high-skill medical and technology services to other nations seems to contradict the value chain model of offshoring. Which of the following could be a reason? The wages of higher-skilled workers (such as accountants) in these other nations are relatively lower than in the United States. Higher-skilled workers in India earn top money for what they do. The wages of higher-skilled workers (such as accountants) in these other nations are relatively higher than in the United States. The ratio of wages of lower-skilled workers to higher-skilled workers in these other nations is relatively lower than the same ratio for the United States.
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*Abstract*: The United States has trained some of the world's best computer programmers and technology experts. Despite all of this training, many businesses do not have a full understanding of information technology. As the importance of technology in the business world grows, many companies are wasting money on extensive technology projects. When problems arise, they expect that further investment will solve these issues. To prevent such problems, many companies have begun to outsource these functions in an effort to reduce costs and improve performance. The majority of these outsourced information technology and call center jobs are going to low-wage countries, such as India and China where English-speaking college graduates are being hired at substantially lower wages. The purpose of this study is to evaluate the positive and negative aspects of offshore outsourcing with a focus on the outsourcing markets in India and China, arguably the two most popular destinations for outsourcers. The cost savings associated with offshore outsourcing will be evaluated in relation to the security risks and other weakness of offshore outsourcing. In addition, an analysis of the number of jobs sent overseas versus the number of jobs created in the United States will be used to assess the effects that outsourcing is having on the American economy and job market. Finally, the value of jobs lost from the American economy will be compared to the value of jobs created. The goal of these analyses is to create a clear picture of this increasingly popular business strategy.
Sri K.
a corporation can increase its value by engaging in trade. This value increase comes from increasing revenues from operating in more than one area. The costs can go down as production shifts to lower-cost regions of the world. Also, risk goes down as a company operates in multiple regions. You can also see trade and globalization at work from the Module video. However, from a country's perspective, trade may be good or bad. For example, the U.S. can benefit from trade if consumers can get goods and services for lower prices. However, if jobs are lost or deindustrialization occurs, then the U.S. can get hurt due to its companies engaging in trade. So, the question for the module becomes, should a corporation worry about the country that its headquarters is located in when it makes trade-related decisions? Should it worry about where it carries out manufacturing? Or should it just focus on maintaining efficiency?
Tavis L.
Many companies outsource segments of their business to external providers, such as information technology (IT) and human resources (HR). The data below show the types of outsourcing decisions made by a representative sample of companies from two industry sectors. Do these data highlight significant differences between companies in the financial and industrial goods sectors with regard to their outsourcing decisions? Complete parts a through e below. B) Find the expected counts for each cell. C) State the hypotheses. D) Test an appropriate hypothesis and state your results. E) Interpret the meaning of the results and state the conclusion. - IT_Only HR_Only Both_IT_and_HR Financial 1611 630 123 Industrial_Goods 1271 441 103
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